Cryptocurrency Q&A
Can I write off FTX losses?
Can I write off FTX losses?
ThunderBreezeHarmony
Tue May 07 2024
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7 answers
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Hello there, I'm seeking some clarification on a financial matter. Given the recent events surrounding FTX, I've incurred some losses. I'm wondering if there's any possibility of writing off these losses for tax purposes. Could you please elaborate on the conditions and procedures involved in doing so? I'm aware that tax laws can be quite complex, so a detailed explanation would be greatly appreciated. Thank you for your time and assistance in this matter.
7 answers
Andrea
Thu May 09 2024
In the US, there are tax implications for crypto funds that become worthless.
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TaekwondoMasterStrengthHonorGlory
Thu May 09 2024
Generally, the concept of loss is relative when dealing with recoverable items.
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DigitalDynastyQueen
Thu May 09 2024
If your crypto funds become completely unusable and unrecoverable, you may have tax relief options.
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CryptoPioneer
Thu May 09 2024
If an item can be retrieved, it is not considered lost.
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Michele
Thu May 09 2024
One such option is to write off the loss as a nonbusiness bad debt on your taxes.
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